Yahoo! announced today it has reached an agreement with Alibaba Group on a staged and comprehensive plan to unlock the Yahoo’s investment in Alibaba.
“Today’s agreement provides clarity for our shareholders on a substantial component of Yahoo!’s value and reaffirms the significance of our relationship with Alibaba,” said Ross Levinsohn, Interim CEO of Yahoo! said in the release.
The plan, which was announced in a release, includes a transaction this year where Alibaba will purchase up to one-half of Yahoo’s current stake in the top Chinese e-commerce company. The transaction could generate more than $7 billion in proceeds should Alibaba buy the full amount. Both companies also set up a framework where Yahoo! can monetize the remaining interest in the Chinese company in stages.
[ via Yahoo]